In our previous articles, we’ve discussed the importance of risk management in daily life. For corporate projects, risk management is a discipline that draws a lot of attention and executive effort. Formal methods for project risk management have been well established by organizations like PMI. However we’ve pointed out some of their limitations in applying to projects. So are there any research reports that tell us the current state of risk management in projects?
“Risk Management and Problem Resolution Strategies for IT Projects: Prescription and Practice” by Hazel Taylor of University of Washington was published in Project Management Journal, Volume 37, Number 7 in Dec 2006. The paper is based on research done in
It’s essential to look at the profiles of interviewees in the research. Information collected from this group of project managers has to be representative and their competence and experience directly affects the credibility of the research results. Below is some background information of the interviewees:
- Recognized by their respective organizations and peers as proficient and experienced in PM
- Demographic information: 18 Chinese, 7 foreign
- All well-versed in typical project management methodologies such as PMBOK
- All had trained or worked abroad, and all had experience working with people from other cultures
So they were not rookie project managers. Instead they were all well-established professional managers within their own organizations, and knowledgeable about PM methodologies.
The paper tries to identify risk sources in typical IT projects. The response strategies and counter measures this group of project managers adopted are further investigated. The goal is to understand what risk management practice is used in real life situations.
Risk Factors Identified
There risk factors identified are classified into four main themes – Project Management, Relationships, Solutions ambiguity and Environment. Below are sample risk sources associated with each theme. For a full list, please refer to the original paper.
- Project Management – Staffing resources, change management, schedule and budget, sign-off control
- Relationships – Team morale, expectation management, management support
- Solutions Ambiguity – Newness and complexity, technical environment, functionality
- Environment – Reputation, legal and credit risk, contract terms and conditions
To be continued…
Copyright 2008 Knowledge Century Limited.
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